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2011 (5) TMI 720 - AT - Central ExciseInterest and Penalty under Section 11AC - M/s. Supreme Rubber Industries were manufacturing rubber moulded articles out of raw material supplied by M/s. Batavia Brothers and they were also affixing the goods with the brand name of various traders - S.S.I. exemption Notification 1/93-C.E they would not be eligible for S.S.I. exemption - duty liability on the goods manufactured by M/s. Supreme Rubber Industries is to be discharged on the value determined on the basis of the cost of the raw material plus job charges plus job worker's profit, not on the sale price of the owners of the goods - whether the extended period was available to the department - longer period of limitation under Section 11A would not be available in a situation where on some issue of excisability, classification, valuation or rate of duty involved in a case of alleged short payment of duty, there are conflicting judgements of Tribunal and High Courts - longer limitation period under proviso to Section 11A was not available to the department and the duty can be demanded only for normal limitation period - Interest on short paid/not paid duty under Section 11AB and imposition of penalty under Section 11AC was linked to such short payment/non-payment being due to fraud, wilful suppression of facts, mis-statement etc. with intent to evade payment of duty - these elements are not present in this case - interest on duty under Section 11AB and penalty on M/s. Supreme Rubber Industries under Section11AC not imposable - matter is remanded to the original adjudicating authority for re-quantification of duty demand
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